Allegheny Technologies Inc. agreed to sell two closed-die steel forging operations for $37 million in cash to Wynnchurch Capital LLC, a private-equity holding company. The plants in Portland, IN and Lebanon, KY, which ATI described as "non-core" operations, produce small forged parts in carbon, specialty alloy, and stainless steels for industrial markets, including oil-and-gas, transportation, and construction and mining industries.
Both plants are organized as part of ATI’s High Performance Materials & Components (HPMC) segment. ATI emphasized that both use "primarily traditional forging methods." Records show the installed equipment includes hammer mills, mechanical and hydraulic presses, and mechanical upsetters.
Historically, the two plants were part of the Teledyne Technologies business that was consolidated with Allegheny Ludlum Inc. in 1996 to form, first Allegheny Teledyne Inc., then Allegheny Technologies Inc. in 1999.
“This transaction is consistent with our ongoing efforts to actively evaluate our business portfolio to ensure we’re focused on key growth opportunities for HPMC in the aerospace and defense end-markets, specifically in nickel and titanium products as well as in advanced iso-thermal and hot-die forgings,” stated John Sims, executive vice president, HPMC segment.
Allegheny Technologies also announced the sale of its titanium investment-casting business in Albany, OR, to Consolidated Precision Products Corp. That operation also is part of the HPMC segment.
The proceeds from both sales will be used to address corporate debt and to fund pension obligations, ATI noted.
Allegheny Technologies continues to operate the ATI Forged Products business, which is mainly focused on aerospace markets with products like isothermal forgings, large closed-die forgings, and large-diameter rolled rings. Last year, ATI announced a three-year, $95-million capital investment project to expand the isothermal forging and heat-treating capacities in Cudahy, WI, to address growing demand from the aerospace jet engine market.